Hello after years of owning and operating different types of companies with a few that I have sold, and a few have closed, and a few that are operational today I feel that I can give some advice about the thought of owning and operating your own company.
How I got started in Self Employment:
I lived with my grandparents later in my life and my grandmother Hazel James owned and operated Century 21 Real Estate in San Marcos California. I was often taken with her to the office and on house tours and so forth. I believe this is what gave me the idea of being Self Employed. I also have always been the type of person not afraid to take risk or try something on my own.
When I was around 19 I started to work for a company that had a kiosks in a local mall in Escondido California. During my employment the owners decided to abandon the business so I took it over. I had a crash course in business. Soon however I had this business operational in 3 malls in the local area and eventually sold the company that is still in operation to my knowledge in Sea Port Village in San Diego, California.
I eventually went to college and got a degree in Business Management with a minor in Accounting.
I worked for some companies but found myself often Self Employed in one way or another.
I have sold 3 companies I started and they are all in operations today, I have had to close a few as well for various reasons, and I have had a few that totally flopped. Today I have Tomsik Enterprises that has 3 companies that have been open between 1 to 3 years.
Here are a few questions to ask yourself about being Self Employed:
Can whatever Self Employment your deciding to do support YOU, YOUR FAMILY, and THE BUSINESS?
Will your Self Employment give you the lifestyle you want ?
How much time and energy are you willing to spend on your business venture ?
Are you able to secure money to be Self Employed ?
Answering these questions may help you decide if Self Employment is what you want. Many people look at some of the millionaires in America and we all want to be like them. However the reality is that Self Employment is hard work and many people that are Self Employed take years to make the money and get the lifestyle they wanted. I have also learned from my experiences that many people that have become millionaires either had a family that already had established companies and business ventures and they were handed down the company or business.
Being Self Employed often takes more energy, more time and more commitment from you. As your in charge the business is yours. These are things you should consider I have ran into many people who own a business but it becomes a back burner or part time gig. It is possible that you could do a business part time or even as a second income but if your deciding to do this I do not consider it true SELF EMPLOYMENT.
For me SELF EMPLOYMENT is not having a full time job, and operating a company as well. However if you still want to do this I do not discourage you from doing it. Maybe starting Part time will help you build your business to a point where you do not need a full-time position.
However to me being SELF EMPLOYED is working for yourself and not working a full time position at a job and operating a business at the same time. I admit however I have done this myself to be able to build my companies to make the money needed for my life style.
MONEY:
There are some ways to start a company with little or no money however in most cases people borrow money to start and operate a business.
Questions to ask yourself:
How much money is needed to start the company?
Do I need to take a loan to start the company?
How long will it take the company to make a profit?
Will the company pay your bills, take care of your family, and take care of the business?
If your answers do not add up than possibly starting a company on a part time bases may be considered until you can built it up to a point where you do not need a regular job.
One of my companies called Outlaw Sports Radio and later changed to Outlaw Sports Entertainment started with no money. It was an entertainment company that started as a radio show on Centiflix Radio in Jacksonville Florida. I build the company up to where we had been working with ESPN, and we had sponsors. The company made money though I will admit to you I would have liked it to made more. I closed the company after ESPN pulled out of sponsorship in 2013. It is possible to start a business venture with little money my wife started her soap company Dandy Little Soap Company with $30.00.
I had another company that we started literally with an ad on craigslist, It was a cleaning company and we built it up and sold it. It still is in operation today and currently the owners are selling it again. However I have had a few companies flop as well. However in doing all of this my knowledge gained and my experience thought me what mistakes I had done so I would not do them again. I did lose money a few times because of the business ventures not working out.
Money is a major factor in all our lives so deciding on Self Employment is a big decision in your life.
So in considering SELF EMPLOYMENT you have to determine what risk your willing to take finically.
If you are considering a loan or credit to open the business make a plan on how to repay the loan or credit lines.
Research and go over your finical plan with a bank or accountant or someone that can look over your plan to make sure it is a good solid plan for you and your company.
WHAT KIND OF SELF EMPLOYMENT SHOULD I CONSIDER:
Many times there is a service you can provide in your community but you should consider doing something you love. There is nothing worse than to hate your own company. At least if you are employed you can quit and find another job, but being self employed you are relying on yourself and that company your building. Also finding out needs of your community helps a lot. I find many people get taken by companies selling franchisee or representatives of companies that have many in that area. In this case those companies have already established themselves in the community making it hard to open another one in your community.
I find that doing something you really love helps. Maybe you make jewelry, or you’re an artist, or you have some other talent that makes you stand out and you can make a business that sells those products. Maybe you love to cook and can start a restaurant or maybe you're really good at legal issues and could open a law firm. Whatever you decide as SELF EMPLOYMENT love doing it!
RESEARCH YOUR SELF EMPLOYMENT:
Anytime your making a decision to be Self Employed you should research the type of Self Employment you are doing.
So how does a person research the type of Self Employment I am considering?
Today the internet is a wonderful tool for this type of research. However just surveying your community needs and going around your community may give you a good idea if the type of Self Employment you want is a good fit for your community and will be a company that will fit all your needs as well.
You could research then type of company you want to do. In my dealings with doing events in Reno and Sparks Nevada many people had bought into a similar or the same company so that company was saturated in the community. Companies that you buy into like a franchise can be researched on how many of those companies are in your area. It is not a bad thing to have a similar or same company in the same area but to have 20 of them is a bit hard for everyone. I find going around your local community is the best way to find out what types of companies are in that area, and if your idea will work in that community. Let's say you wanted to open a Pizza company but there are already 20 Pizza places in your community than another Pizza place may not be the best fit.
Questions to ask yourself:
Are you providing a service or product to the customers?
Who will be wanting your service or products?
Is there a need for this service or product in your area?
Who will be your customers?
Asking questions like this can give you an idea if your business venture is a good fit in your community.
WHERE TO GET HELP FOR SELF EMPLOYMENT VENTURES:
There is not really a college or school that you can go to. Sure you can take some college courses and there are some vocational schools that teach business skills. However I can recommend the SMALL BUSINESS ADMINISTRATION. This is a federal agency that is dedicated to helping SELF EMPLOYMENT or Small Business. Also look up SCORE. This is another agency that can help you with a business plan, loans, writing a business proposal or plan. Another way to do it is talk to someone that owns a business see how they started, see the story they have. However I found most owners are not willing to do this if your opening a similar company.
Sure you can take some college classes after all I have a Degree in Small Business Management with a minor in Accounting. However it does not really prepare you for the ownership of a company I believe the only way is to really do it. It is a huge learning curve for sure.
SCAMS plus PYRAMID COMPANIES and FRANCHISEE:
The old saying IF IT SOUNDS TO GOOD TO BE TRUE than it could be a scam of a fake business. Beware of companies outside the USA and even some inside. I love these companies that promise millions of dollars or overnight riches. Really if they are doing that well why are they out there charging a fee?
The best bet is to research any company that offers something to fast, sounds unreal, or just seems to unrealistic. These types of companies prey on people wanting to build a business.
Pyramid companies actually are illegal but they are still out there watch out for companies that bring you in and want your family and friends suckered in as well. These companies build like a Pyramid so that is why they are called that. Starting with one person and filtering down into possibly endless numbers but in a real world the top people make the money after a while the cycle burns out.
Franchisee can be a good way to get started however research the franchisee. Having several of the same company or similar companies in an area is really not a great idea. I have seen in my experience people bought into a company franchisee only to later find out there had been may in that area. Also companies that want you to buy in I ran into a young lady who got suckered into buying $4000 in books and she could not unload them.
LICENSES, INSURANCE, PERMITS, and EXTRA:
To have a company or be self-employed your company should get a license, or permit and have insurance, and possible legal assistance if needed. To look up what you community requires start with the City or County you live in. There usually is a government ran operation where you can find out how you get the necessary legal documents you need to operate a company in your area. If there are no local agencies you may need to go to the county or even state agencies. Fees and cost vary in each place so it is all research.
INSURANCE: Not only will you need insurance for your company but for yourself as well. Insurance is one of the most important things you can do to protect yourself while being SELF EMPLOYED. You can go through most regular insurance companies these days so I would say start with whomever you use for insurance and see what they come up with for you. If you get to a point where you have employees insurance is a whole subject you will need to research.
I hope this blog gets your creative mind going please give me some feed back!